UK Student Loan Repayment Calculator (2026)
Estimate annual and monthly UK student loan deductions from salary across Plan 1, Plan 2, Plan 4, Plan 5 and Postgraduate loans.
United Kingdom Calculator
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Move the sliders or type exact numbers. Results update instantly.
Instant Estimate
Your Results
Annual Repayment
£1,143
Based on your selected student loan calculator assumptions. Try different sliders to compare scenarios.
Monthly Repayment
£95
These calculations are financial projections and planning estimates, not tax, legal or licensed financial advice. HMRC 2025/2026 statutory rates, NI thresholds, and local council rates apply.
How to Use the Student Loan Calculator
Enter your gross annual income
Input your pre-tax annual salary or combined self-employment profits.
Select your student loan plan threshold
Choose Plan 1 (£24,990), Plan 2 (£27,295), Plan 4 Scotland (£31,395), Plan 5 (£25,000), or enter custom threshold.
Review monthly and annual deductions
See your automatic 9% repayment deduction calculated strictly on earnings above the threshold.
Formula & Calculation Methodology
Repayment = Income above threshold x repayment rateThis calculator uses standard United Kingdom financial formulas, IRS thresholds, and amortization schedules. All results compute instantly in your browser with zero data stored or transmitted.
Calculation Examples & Scenarios
Plan 2 Graduate on £35,000 Salary
£35,000 gross salary, Plan 2 threshold £27,295, 9% repayment rate.
Plan 2 Higher Earner (£55,000 Salary)
£55,000 salary, Plan 2 repayment.
Undergraduate + Postgraduate Loan (£45,000)
£45,000 salary, Plan 2 (9% over £27,295) + Postgraduate (6% over £21,000).
Key Benefits
- Calculates exact PAYE salary deductions across Plan 1, 2, 4, 5, and Postgraduate loans
- Illustrates why student loans function like a 9% graduate tax rather than standard commercial debt
- Helps graduates evaluate the financial reality of voluntary overpayments vs 30/40-year write-offs
Common Use Cases
- UK university graduates forecasting take-home pay on entry-level and mid-career salaries
- Employees with both undergraduate and postgraduate student loans assessing combined deductions
- Mortgage applicants calculating how student loan deductions reduce lender affordability multiples
How UK Student Loan Repayments Work
UK student loans do not operate like typical bank loans or commercial debt. Monthly repayments are linked entirely to how much you earn, not the size of your outstanding loan balance. You only repay 9% of your gross earnings above your specific plan’s annual threshold.
If your income falls below the statutory threshold due to career breaks, parental leave, or job changes, repayments stop immediately with no arrears or penalties.
Plan 2 vs. Plan 5: The 30 vs 40-Year Write-Off Rule
Under Plan 2 (students who started between September 2012 and July 2023), any remaining balance is cancelled and written off completely after 30 years from the April after graduation. For Plan 5 students (starting August 2023 onwards), the repayment threshold is lower (£25,000) and the write-off term is extended to 40 years.
Because the vast majority of Plan 2 graduates never repay their full balance before the 30-year write-off, making voluntary overpayments is mathematically unnecessary for most workers.
Frequently Asked Questions
The annual thresholds are: Plan 1 is £24,990; Plan 2 (undergraduates 2012–2023) is £27,295; Plan 4 (Scottish students) is £31,395; Plan 5 (undergraduates starting 2023 onwards) is £25,000; and Postgraduate Loans is £21,000.
Undergraduate plans deduct 9% of your gross earnings above the plan threshold through PAYE. Postgraduate loans deduct 6% of earnings above £21,000. If your salary falls below the threshold, deductions stop automatically.
Plan 2 loans are written off after 30 years and have a higher threshold (£27,295). Plan 5 loans (for students starting August 2023 or later) have a lower threshold (£25,000) and an extended 40-year write-off term, meaning most graduates will repay for longer.
Student loans do not appear on standard credit reports and do not affect your credit score. However, mortgage lenders factor monthly student loan deductions into their affordability calculations, as they reduce your net monthly disposable income.
For most Plan 2 graduates, no. Because outstanding balances are cancelled after 30 years, paying extra cash simply pays off debt that would otherwise be legally written off by the government, unless you are a guaranteed high earner across your entire career.
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